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    James Holmes • Stifel, Nicolaus & Company, Incorporated

    James Holmes's questions to NCR Atleos Corp (NATL) leadership

    James Holmes's questions to NCR Atleos Corp (NATL) leadership • Q2 2025

    Question

    James Holmes, on for Shlomo Rosenbaum, asked about the sustainability of the high ATM as a Service gross margin, potential impacts from the deal backlog, and the interest rate assumptions embedded in guidance for the Network segment.

    Answer

    CEO Tim Oliver and COO Stuart MacKinnon explained that while the recent 900 bps margin expansion was due to an advantageous mix, the business model is highly scalable, and profitability should continue to outpace revenue growth. Regarding interest rates, Stuart MacKinnon noted they borrow at SOFR plus 70-90 basis points. Tim Oliver added that the original 2025 plan assumed four rate cuts that have not occurred, and the company has absorbed this impact into its reaffirmed guidance.

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    James Holmes's questions to NCR Atleos Corp (NATL) leadership • Q1 2025

    Question

    James Holmes, on for Shlomo Rosenbaum, asked about the types of customers and geographies driving ATM-as-a-Service growth and the reasons for the strong gross profit performance in that business.

    Answer

    CFO R. Wamser explained that Q1 customer additions were concentrated in high-ARPU North America, with a balanced global pipeline for the remainder of the year. CEO Tim Oliver added that the strong profitability is driven by winning smaller, high-value contracts in North America, where the company's scalable cost structure delivers higher margins compared to more competitive markets like India or Brazil.

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